LIVINGSTON, N.J., May 14, 2012 (GLOBE NEWSWIRE) -- Milestone Scientific Inc. (OTCQB:MLSS), the recognized leader in advanced, computer-controlled injection technologies, today announced financial results for the three months ended March 31, 2012
Leonard Osser, Chief Executive Officer of Milestone Scientific stated, "We remain focused on executing our new sales and marketing strategy targeting large group dental practices. Our roll-out with Towncare Dental is making headway, and beta testing of our STA Single Tooth Anesthesia System® with other dental groups across the US is progressing. Several of these dental groups have successfully completed their initial trial programs and are now following their respective corporate protocol regarding the implementation of our STA instruments. We look forward to announcing our collaboration with additional group dental practices as they begin deployment of our instruments across their respective organizations."
Mr. Osser continued "During the first quarter of 2012, Milestone closed on a $150,000 off-shore offering of Common Stock at $1.40 per share. The infusion of capital will help accelerate our move into additional medical markets."
"Our medical joint venture agreement with Beijing 3H (Heart-Help-Health) Scientific Technology is progressing according to plan. To date, Beijing 3H has contributed $1.5 million to the Medical Joint Venture for the development, manufacture, and commercialization of epidural and intra-articular injection instruments. We are encouraged by our progress to-date and look forward to commercializing the technology in the U.S., China and around the world. In addition to our partnership with Beijing 3H, we have identified potential applications for our innovative, pressure sensing technology and believe there are significant opportunities that lie ahead within the medical arena."
Revenue for the three months ended March 31, 2012 was $1.9 million versus $2.4 million for the first quarter of 2011. The decrease in sales was primarily due to a marketing shift in the U.S. toward large dental groups which have a longer selling cycle. Gross profit for the first quarter of 2012 was $1.3 million or 65% of revenue versus $1.5 million or 64% of revenue for the first quarter of 2011. Operating loss for the first quarter of 2012 was $233,151 versus a loss of $121,573 for the first quarter of 2011. The increase in operating loss was substantially attributable to a decrease in revenue and gross margin dollars, offset by a reduction in selling, general and administrative expenses. Net loss for the first quarter of 2012 was $355,181 versus a loss of $141,644 for the comparable period in 2011. Net loss for the first quarter of 2012 included a loss of $78,095 related to the medical joint venture expense that did not occur in the same period last year.
Milestone's executive management team will host a teleconference on Monday, May 14, 2012 at 4:15 P.M. Eastern Time to discuss the company's financial results. The conference call can be accessed via telephone by dialing toll free 877-941-9205. For those unable to participate at that time, a replay of the call can be accessed by dialing 800-406-7325 and entering the pass code 4538197. The replay will be available for 90 days.
About Milestone Scientific Inc.
Headquartered in Livingston, New Jersey, Milestone Scientific is engaged in pioneering advanced computer-controlled drug delivery technologies for the medical and dental markets and currently sells its award-winning products through a global distribution network serving North and South America, Asia, Africa, Europe and the Middle East. For more information on the STA Single Tooth Anesthesia System® instrument and other innovative Milestone products, please visit the Company's web site found at www.milestonescientific.com.
Safe Harbor Statement
This press release contains forward-looking statements regarding the timing and financial impact of Milestone's ability to implement its business plan, expected revenues and future success. These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Milestone's control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses, adverse patent rulings, FDA or legal developments, competitive pressures, changes in customer and market requirements and standards, and the risk factors detailed from time to time in Milestone's periodic filings with the Securities and Exchange Commission, including without limitation, Milestone's Annual Report for the year ended December 31, 2011. The forward looking-statements in this press release are based upon management's reasonable belief as of the date hereof. Milestone undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
| MILESTONE SCIENTIFIC INC. | ||
| CONDENSED STATEMENTS OF OPERATIONS | ||
| (Unaudited) | ||
| Three Months Ended March 31, | ||
| 2012 | 2011 | |
| Product sales, net | $ 1,921,358 | $ 2,425,988 |
| Cost of products sold | 662,946 | 879,588 |
| Gross profit | 1,258,412 | 1,546,400 |
| Selling, general and administrative expenses | 1,452,252 | 1,624,255 |
| Research and development expenses | 39,311 | 43,718 |
| Total operating expenses | 1,491,563 | 1,667,973 |
| Loss from operations | (233,151) | (121,573) |
| Other expenses | ||
| Interest expense | (42,403) | (19,372) |
| Interest-Amortization of debt issuance | (1,532) | (699) |
| Loss on Earning from Joint Venture | (78,095) | -- |
| Total other expenses | (122,030) | (20,071) |
| Net loss applicable to common stockholders | $ (355,181) | $ (141,644) |
| Net loss per share applicable to common stockholders -- | ||
| Basic and diluted | $ (0.02) | $ (0.01) |
| Weighted average shares outstanding and to be issued -- | ||
| Basic and diluted | 15,338,367 | 14,875,541 |
| MILESTONE SCIENTIFIC INC. | ||
| CONDENSED BALANCE SHEETS | ||
| March 31, 2012 | December 31, 2011 | |
| (Unaudited) | ||
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 112,986 | $ 96,324 |
| Accounts receivable, net of allowance for doubtful accounts of $180,503 in 2012 and $182,880 in 2011 | 1,069,454 | 1,154,459 |
| Inventories | 589,173 | 790,494 |
| Advances to contract manufacturer, current | 940,318 | 952,558 |
| Prepaid expenses and other current assets | 297,231 | 304,180 |
| Total current assets | 3,009,162 | 3,298,015 |
| Accounts receivable-long term, net of allowance for doubtful accounts of $332,052 as of March 31, 2012 | ||
| and $372,000 as of December 31, 2011 | 230,660 | 261,256 |
| Advances to contract manufacturer, non current | 2,358,107 | 2,453,948 |
| Investment in distributor, at cost | 76,319 | 76,319 |
| Investment in Medical Joint Venture | ||
| 46,084 | 124,179 | |
| Furniture, Fixtures & Equipment net of accumulated depreciation of $450,155 as of March 31, 2012 | ||
| and $446,484 as of December 31, 2011 | 47,073 | 52,309 |
| Patents, net of accumulated amortization of $363,159 as of March 31, 2012 | ||
| and $344,238 as of December 31, 2011 | 689,587 | 698,357 |
| Other assets | 20,316 | 27,819 |
| Total assets | $ 6,477,308 | $ 6,992,202 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $ 3,407,006 | $ 3,931,531 |
| Accrued expenses and other payables | 766,259 | 677,419 |
| Total current liabilities | 4,173,265 | 4,608,950 |
| Long-term Liabilities: | ||
| Notes Payable-net of discount of $1,532 and $3,065, respectively | 448,468 | 446,935 |
| Total long-term liabilities | 448,468 | 446,935 |
| Commitments and Contingencies | ||
| Stockholders' Equity | ||
| Common stock, par value $.001; authorized 50,000,000 shares; 15,693,678 shares issued | ||
| 1,568,124 shares to be issued and 15,660,345 shares outstanding as of March 31, 2012; | ||
| 15,556,878 shares issued, 1,501,457 shares to be issued, and 15,523,545 shares outstanding | ||
| as of December 31, 2011 | 17,262 | 17,058 |
| Additional paid-in capital | 63,965,072 | 63,690,837 |
| Accumulated deficit | (61,215,243) | (60,860,062) |
| Treasury stock, at cost, 33,333 shares | (911,516) | (911,516) |
| Total stockholders' equity | 1,855,575 | 1,936,317 |
| Total liabilities and stockholders' equity | $ 6,477,308 | $ 6,992,202 |